Simplifying the CRC Energy Efficiency Scheme

The CRC Energy Efficiency Scheme is a mandatory UK-wide trading scheme introduced in April 2010 which targets emissions from large public and private sector organisations. It is designed to drive emissions reductions in the target sectors by incentivising the uptake of cost-effective energy efficiency opportunities through the application of financial and reputational drivers.

Objectives of the consultation

Following discussions with businesses, industry, other scheme participants and regulators the Government published, on 30 June 2011, outlined proposals to simplify the CRC Energy Efficiency Scheme. The aim of the proposals was to develop a CRC scheme which:

Is simpler, reducing administrative burden on businesses;

Provides greater certainty to participants about how they comply with the CRC;

Allows greater flexibility for businesses in how they take part;

Reduces the overlap between the CRC and other government climate policies.

The Government encouraged participants to comment on the outlined proposals by 2 September 2011. Detailed proposals will be formally consulted on in early 2012.

CIBSE response

CIBSE believes that the substantial primary simplification of the CRC scheme and a further substantial convergence and incentive generator should be progressed. To achieve these the Government should make a firm commitment to roll out mandatory DECs to all commercial buildings in time for the second CRC phase.

CIBSE argues that it is essential to reconsider the balance of control over energy consumption in multi tenanted buildings.

CIBSE agrees with reducing the number of fuels from 29 to 4, however, the accuracy criterion for the large number of smaller supplies should be relaxed from 5%, as their energy records and billing is generally poor. Also a possible problem is that removal of the 90% de minimis rule could significantly increase the number of supplies reported annually due to inclusion of all smaller Profile Class 03 and 04 electricity and smaller gas supplies.

CIBSE welcomes reduction of the administrative burden of Evidence Packs and believes that there is significant potential for improving the structure, reducing repetition and harmonising with the Annual Report.